West European demand for the material increased by only 1% last year

Polypropylene consumption in western Europe grew by less than 1% last year, according to consultancy Nexant Chem Systems. During the first six months of last year, prices slumped due to low demand and plentiful supply. Nexant estimates the market at 8.2 million tonnes in 2005. It sees western European PP growth of 3.6% per annum for the period 2005 to 2010.

At the same time, PP demand in central and eastern Europe (CEE) showed better growth in 2005, with sales up by 4.8% to 1.5 million tonnes. “The growth in PP demand is fuelled not only by growing substitution of traditional materials by plastics, but also a shift in manufacturing from western Europe to countries such as Poland and the Czech Republic,” says Green.